Everything You Need to Know About SOCSO Benefits

In Malaysia, the Social Security Organization (SOCSO), also known as Pertubuhan Keselamatan Sosial (PERKESO), provides essential social security protections for employees. Understanding the full scope of SOCSO benefits is crucial to ensure that you are properly covered for unexpected events like illness, accidents, or even death. This article will take you through the types of benefits available, how they work, and how to make a SOCSO claim for critical illness or other benefits.

What is SOCSO and Who is Eligible?

SOCSO is a government agency responsible for providing social security protections to employees in Malaysia. It ensures that employees who experience work-related injuries, disabilities, or death are provided with financial support.

In Malaysia, SOCSO benefits are available to:

• Employees under a contract of service or apprenticeship.
• Contractual or temporary staff employed by the Federal or State Government and Statutory Bodies.

Employers are required to register and contribute to SOCSO for all eligible employees, ensuring that employees are registered and have access to PERKESO benefits. Employers are also responsible for reporting any work-related accidents within 48 hours. This obligation ensures employees have immediate access to essential benefits when they need them the most.

SOCSO Contribution Rates for Employees and Employers

The SOCSO contribution is based on the employee’s monthly salary, with the contribution rate depending on their earnings. Both the employee and the employer contribute a percentage of the salary, but the contribution amount differs based on income.

• Employees earning RM1,500 to RM5,500 contribute 0.5% of their salary to SOCSO.
• Employees earning RM6,000 or more still contribute based on the RM6,000 ceiling.

Employers are also required to contribute a larger share of 1.25% of the employee’s salary. For example, if an employee earns RM6,000, the employer will contribute an amount equal to 1.25% of the RM6,000, which would be RM75.

By contributing to SOCSO, employees are covered for a wide range of incidents, and the employer shares responsibility in ensuring that protection is provided.

Types of SOCSO Benefits

SOCSO offers several types of benefits designed to support employees in various circumstances. Here’s an overview of the key benefits:

Employment Injury Benefits

SOCSO covers employees who experience workplace accidents or contract occupational diseases. This includes:

• Industrial Accidents: Injuries sustained while working at the workplace.
• Commuting Accidents: Injuries occurring while commuting to or from work.
• Emergency Accidents: Injuries sustained while responding to an emergency.
• Occupational Diseases: Long-term health issues caused by work, such as hearing loss from noise or respiratory issues from exposure to harmful chemicals.

Employees eligible for the Employment Injury Scheme are entitled to:

• Medical Benefits: Coverage for medical treatment and rehabilitation.
• Temporary Disablement Benefits: If an employee is temporarily unable to work, they are compensated for lost wages.
• Permanent Disablement Benefits: In cases of permanent disability, compensation is provided to cover the employee's ongoing needs.
• Constant-attendance Allowance: For individuals needing constant care due to disability.
• Dependents’ Benefit: If the employee passes away due to a work-related incident, their dependents are entitled to benefits.
• Funeral Benefit: A funeral benefit is provided for employees who pass away due to a work-related injury.

Invalidity and Survivors’ Benefits

The Invalidity Scheme provides coverage for employees who become invalid or die from any cause, not just those related to work. Even if an employee suffers from an illness or injury unrelated to their work, they are still covered under this scheme.

The benefits include:

• Invalidity Pension: Ongoing financial support for employees who are no longer able to work due to health issues.
• Invalidity Grant: A one-time lump sum for employees with invalidity.
• Constant-attendance Allowance: For those who need ongoing personal assistance.
• Survivors’ Pension: Paid to the dependents of employees who pass away.
• Funeral Benefit: A contribution towards the funeral costs.
• Rehabilitation and Education Benefits: Access to vocational rehabilitation and educational support for dependents.

Employment Insurance System (EIS)

In addition to traditional SOCSO benefits, employees are also covered by the Employment Insurance System (EIS), a separate but essential part of the social security system.

Job Search and Re-Employment Benefits

If an employee loses their job, EIS offers benefits that can assist during the transition period, including:

• Job Search Allowance (JSA): A monthly allowance for up to 6 months to help employees find new employment.
• Reduced Income Allowance (RIA): For employees who lose part of their income from multiple job sources.
• Training Fee: Financial assistance for vocational training, with up to RM4,000 in coverage.
• Training Allowance: Employees can receive allowances of RM10-RM20 per training day for up to 6 months.
• Re-Employment Placement Programme: Assistance with job placement through SOCSO Employment Services.

It’s worth noting that if you face financial challenges while seeking employment, you can also explore Amanahkredit for instant loan options. This can provide a quick solution to cover urgent expenses, especially while navigating periods of job loss.

Additional Benefits of EIS

EIS also provides a re-employment allowance for individuals who return to work and have been receiving job search benefits. This lump sum is 25% of the total JSA entitlement.

For job seekers, career counselling is available to help identify issues during their job search and provide valuable support.

Special Schemes under SOCSO

In addition to the basic SOCSO benefits, there are special schemes designed to protect specific groups of workers.

Self-Employment and Housewives’ Protection Programs

SOCSO’s Self-Employment Social Security Scheme, introduced in 2017, was expanded to include self-employed individuals in 2020. This includes workers in sectors like transportation, agriculture, beauty services, and IT.

• Self-employed workers contribute to the scheme based on their monthly income, starting from RM13.10 per month for those earning RM1,050 per month.
• Housewives are also eligible for a specific Social Security Scheme, providing protection against domestic accidents, illness, and disability. The contribution for housewives is as low as RM10 per month.

These schemes ensure that even those outside traditional employment can benefit from SOCSO protections.

How to Make a SOCSO Claim

Filing a SOCSO claim for critical illness or other benefits requires specific documentation and steps. The process is mainly handled by the employer, who is responsible for submitting the following:

• Accident Report (Form 34) to SOCSO’s office.
• Punch cards/attendance records and a medical certificate.
• A police report and route sketch for commuting accidents.

If you're self-employed or a housewife, claims must be submitted directly to SOCSO, but the required documentation will be similar to that required for employees.

Documents Required for Claims

The necessary documentation for making a claim includes:

• A completed Accident Report (Form 34).
• Medical certificates or treatment records.
• Proof of employment, such as salary slips.
• Identity card for verification.

Ensure that you have all the required paperwork to speed up the claim process.

SOCSO Health Screening and Other Benefits

SOCSO offers more than just financial coverage. For employees aged 40 and above, SOCSO’s Health Screening Program (HSP) provides a free annual health check-up to monitor health risks and detect early signs of chronic diseases.

To be eligible for HSP, employees must check their eligibility via the SeHAT Portal and obtain an HSP number. Bring this number and your MyKAD to a participating clinic for your free screening.

SOCSO also offers other miscellaneous benefits like access to rehabilitation services, which can assist employees in returning to work after an injury or illness.

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